Hello Everyone,
Based upon yesterday's action, I drew an expanding triangle (megaphone) pattern on the SPX 15/10 minute charts which needed another push up to complete the pattern (wave e) which is what occurred just after the open before a sharp reversal to the downside unfolded to undercut yesterday's low. This took the SPX/ES into support around 3970 where bidders stepped in aggressively (solid support area) accompanied by positive divergence. The SPX rallied back up towards the morning highs (near ES 4030 resistance) before some late profit taking. A roller coaster day for sure ahead of tomorrow's PCE report. We can now count 5 waves down but the onus remains on the bulls to take out resistance overhead and hold above today's lows. Keep a close on the dollar and the VIX tomorrow as well for clues.
Please take a moment to look at the trade ideas.
